S&P affirms CAF's rating at AA with a stable outlook

May 28, 2024

CAF maintains the highest credit rating in its history, which strengthens the Institution's trajectory and financial management. This will allow CAF to provide better conditions for all its shareholders, contributing to the sustainable development and integration of its member countries.

S&P affirms CAF's rating at AA with a stable outlook

S&P Global Ratings (S&P) has affirmed its long-term credit rating for CAF, Development Bank of Latin America and the Caribbean, at AA, with a stable outlook. This rating reaffirms investor confidence in the institution, allowing it to offer financing on better terms to its member countries.

In its report, S&P noted that CAF stands out among its peers for the frequency of its capital increases and the support of its shareholders. "The institution has doubled in size in the last 10 years and is looking to maintain its growth rate and continue to support its members as its capital increases. Although CAF's reach is more limited than that of larger institutions, members see the value of CAF in its proximity to the region and agility in loan approval and disbursement," S&P said in a press release.

S&P also indicated that the stable outlook reflects its expectation that CAF will continue to support its member countries and consolidate its presence in the region, while prudently managing its capital.

CAF's Executive President, Sergio Díaz-Granados, highlighted: "the trust of member countries with the historic capitalization of USD 7 billion, the incorporation of new shareholders such as Honduras, the formal application of Bahamas, Dominica and Grenada to join the bank, and the financial strength have supported the favorable performance of CAF's risk ratings, which contributes to the entity continuing to strengthen its presence in global financial markets under competitive conditions, allowing Latin Americans and Caribbeans to have the possibility of accessing better financing conditions to promote social programs and strategic projects that will improve their quality of life.

 In this way, CAF maintains the best credit rating in its history with the rating agencies S&P Global, Fitch, Moody's and JCR. For more than three decades, CAF has been implementing a strategy of diversifying its financing sources, through an uninterrupted presence in global capital markets, which has placed it in a privileged position internationally. The multilateral promotes sustainable development and regional integration, through efficient mobilization of resources for the timely provision of multiple financial services, with high added value, to clients from the public and private sectors of the shareholder countries.